Market Outlook: Chart Shows a Rare Bullish Trade Setup

U.S. stocks were little changed after a volatile week.

January Indicator Indicates 50/50 Chance of Gains in 2014

SPDR S&P 500 (NYSE: SPY) fell 0.4% last week and was down 3.52% for the month.

SPDR Dow Jones Industrial Average (NYSE: DIA) was down 5.2% for the month.

According to a popular interpretation of the January Indicator, this makes the widely followed market forecasting tool bearish for 2014. But history doesn't support this interpretation of the indicator. In the past, a negative performance for the Dow in January has occurred 22 times since 1950, and a down month had been followed by declines in the rest of the year 50% of the time.  (more)


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US Could Start Defaulting on Debt ‘Very Soon’ Warns Lew

US Treasury Secretary calls on Congress to raise debt ceiling immediately to prevent the issue from harming the economic recovery
by Telegraph Staff, and agencies
Telegraph.co.uk
US Treasury Secretary Jacob Lew warned Monday that the US is on course to hit its so-called debt ceiling, the limit to which it can legally borrow, by the end of the month.
He called on Congress to raise it immediately to prevent the issue from harming the economic recovery, adding that the government would start defaulting on its debt “very soon” if it failed to act.
“Time is short. Congress needs to act to extend the nation’s borrowing authority, and it needs to act now,” Mr Lew said in a speech on Monday.
“It would be a mistake to wait until the 11th hour to get this done,” he added. Mr Lew has previously called on Congress to raise the debt ceiling swiftly in a letter last month.
Continue Reading at Telegraph.co.uk…
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These Dividend Growers are a Bargain

In the past week, financial media headlines have been dominated by emerging markets.

The topics range from slowing economic growth and social unrest, to plunging currencies, unstable banking systems and anxieties about the withdrawal of Federal Reserve stimulus.

The problems in emerging markets are certainly serious…

But as investors, we can’t be paralyzed by fear.

We need to keep a longer-term perspective and mine for yield in overlooked places. (more)
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Chart of the Day - Newlinks Genetics (NLNK)

The Chart of the Day is Newlinks Genetics (NLNK). I found the stock by using Barchart to sort the All Time New High List for frequency in the last month, then used the Flipchart feature to review the charts. Since the Trend Spotter signaled a buy on 1/7 the stock soared 56.89%.
NLNK is a biopharmaceutical company which focuses on discovering, developing and commercializing immunotherapeutic products for cancer treatment. Its portfolio also includes biologic and small-molecule immunotherapy products used for the treatment of oncology indications.

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Chipotle Mexican Grill (NYSE: CMG) Breakout Signals 'Buy' Now

Chipotle Mexican Grill (NYSE: CMG), the famed operator of quick service Mexican restaurants, soared to a new high on Friday after reporting fourth-quarter results. Earnings of $2.53 per share were up 30% year over year, matching analysts' estimates. And the company handsomely beat on the top line, reporting a 21% year-over-year revenue increase to $844.1 million versus an estimated $826.3 million.

During the conference call that followed the earnings announcement, the company discussed that an increase in prices on its menu is likely later in 2014, which comes as a direct results of higher input/ingredient costs for crucial items like beef and avocados. This is something that investors have also heard from other restaurant companies in recent weeks, and thus likely came as less of a surprise.  (more)

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Charles Nenner: This Is Not a Major Correction

by James J Puplava CFP
Financial Sense
Jim welcomes back noted technician Charles Nenner, Founder & President of Charles Nenner Research Center. Charles sees some risk to the markets into early February, but does not believe this is the start of a major correction. He believes the stock market should do well in the first half of 2014. Charles also doesn’t see the stock market as overvalued at the moment, but it would be if it rises another 10%. He sees bonds experiencing a bounce currently, which should top out soon. Also in this segment, Jim has this week’s Market Wrap-Up, filling in for Ryan Puplava. Erik Townsend covers the commodities markets and Rob Bernard has the Fixed Income Report.
Click Here to Listen to the Audio
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Stocks Too Volatile For You? Buy This Instead

As we all know, the goal of trading is to make money. But sometimes traders think like analysts, and being right about a market's direction overshadows the primary directive -- making money. So when the stock market gives us fits and starts, and crosscurrents like emerging markets and the Federal Reserve make equities treacherous, it makes sense to look for other opportunities.

As they say, there is always a bull market somewhere, and right now, it looks as if the Japanese yen is in the early stages of one. And for those who cannot or prefer not to trade spot currencies or futures, the CurrencyShares Japanese Yen Trust (NYSE: FXY) provides a liquid way to play.

I will leave the fundamentals of the Japanese economy to others to analyze. From a charting point of view, there is plenty to like, and given the yen's status as a safe-haven currency, the turmoil in emerging markets and volatility domestically add additional luster.  (more)

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